Global Company Tax Could Bring EU Multi-Billion-Euro Windfall



Jan Strupczewski | Reuters

BRUSSELS (Reuters) – The European Union could get an extra 50 billion euros in tax from multinational companies if there is agreement in the Organisation for Economic Cooperation and Development on a minimum global effective corporate tax of 15%, a study showed.

The report, prepared by the EU Tax Observatory for European institutions, said the revenue would more than triple to 170 billion euros if the agreed global minimum tax rate were 25%.

The United States proposed in May a minimum tax rate of 15%, a level backed by many EU countries, and seen as the more likely compromise level than a much higher rate of 25%.

If agreed, it would be part of a reworking of rules for taxing multinational corporations and big technology firms such as Alphabet and Facebook, which now often pay very little tax, despite huge revenues, by setting up offices in low-tax countries like Ireland, Luxembourg or the Netherlands.

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